The Indian rupee raced to a near three-and-half month high on Monday propelled by the central bank's higher-than-expected interest rate increase that boosted outlook on portfolio inflows. The partially convertible rupee ended at 44.1750/1850 per dollar, a level not seen since April 11, and 0.5 percent stronger than Monday's close of 44.3950/4050.
The one-month onshore forward premium was at 25.25 points, steady from Monday, while the three-month was at 74.25 points from 72.25 points and the one-year was at 246.50 points versus 233.25. One-month offshore non-deliverable forward contracts were quoted at 44.26, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange were at 44.1700.